What’s Causing the Bitcoin Price Decline?

The market is all red once again.

Over the past week, Bitcoin has shed nearly $5,000 from its value, plummeting from a comfortable perch above $66,000 to hover around the $61,000 mark (at the time of writing). This sudden plunge has left investors and analysts confused.

This sharp decline coincided with a significant shift in market sentiment. The Crypto Fear and Greed Index fell from 60 to 49 in just 13 days, moving from "Greed" to the edge of "Neutral" territory.

The sudden price drop and sentiment shift have left many wondering about the underlying causes.

Several key events in crypto appear to have influenced this market movement.

Let's jumpt to the details of what's been happening in the Bitcoin market and explore the factors behind this recent plunge.

Reason #1: German Government's Bitcoin Sale

The crypto market experienced significant turbulence following news that the German government is preparing to liquidate a substantial Bitcoin holding.

The German Federal Criminal Police Office (BKA) held approximately 50,000 BTC, seized from a piracy site in 2013, now valued at over $3 billion.

This news, which came to light a few days ago, likely triggered Bitcoin's initial drop from $66,000 to $63,000 - as can be seen on CoinMarketCap.

The prospect of such a large amount of Bitcoin potentially entering the market has understandably caused concern among investors.

Reports suggest that the German authorities have already begun the process, selling around 3,000 BTC in recent days. However, the bulk of the holding—47,000 BTC—remains to be sold.

The government appears to be taking a measured approach to minimize market impact, but investor anxiety persists.

Reason #2: Big Players Hitting the Brakes

The second major factor behind Bitcoin's recent price slide involves the market's biggest fish – the "whales."

Here's what's happening: Whales have suddenly become much less active. Data from Santiment shows that big transactions (over $100,000) dropped by 42% in just a couple of days. That's a significant change in behavior.

So why does this matter? Well, when whales slow down their trading, it often signals caution. This whale behavior is especially interesting as it's happening right after a period of heavy selling.

What does this mean for the market? It could be that these large investors are waiting to see if prices will drop further before they start buying again. Or they might be holding off on selling more to avoid pushing prices down too quickly.

Either way, when the whales get quiet, it's often a sign that the market is at a crossroads. Their next moves could give us clues about where Bitcoin's price might head in the coming weeks.

Reason #3: Mt. Gox Returns With Repayments

The defunct exchange has resurfaced and shaken things up once again. More than a decade after its collapse, Mt. Gox has announced that it will begin repaying its creditors – and the news has sent ripples through the Bitcoin market.

Mt. Gox's Rehabilitation Trustee, Nobuaki Kobayashi, announced that repayments in Bitcoin and Bitcoin Cash will start in early July.

Why is this such a big deal?

Well, Mt. Gox was once the biggest exchange in crypto before its dramatic closure in 2014.

This isn't a small change we're talking about. The three Mt. Gox wallets combined hold 141,686 BTC, worth approximately $8.71 billion.

The fear is simple: as creditors finally get their hands on their long-lost Bitcoin, many might rush to cash out. This potential flood of Bitcoin hitting the market has investors on edge.

The impact was almost immediate. Bitcoin's price took a nosedive to $61,060, marking a 6.5% drop in just 24 hours. While it's since recovered slightly to around $61,300, the market remains jittery.

It's not just Bitcoin feeling the heat. Bitcoin Cash (BCH) also took a hit, dropping 9% in the wake of the announcement.

While the repayment process is set to begin soon, it's worth noting that it could stretch out over several months. The deadline for repayments was previously extended to October 2024, giving the market some breathing room.

Reason #4: Domino Effect

The recent Bitcoin price drop wasn't just about external factors. A significant internal market mechanism played a crucial role in amplifying the decline: cascading liquidations in the derivatives market.

Think of it as the crypto world's version of a domino effect, and it's been in full swing over the past 24 hours.

Here's what went down: As Bitcoin's price started to slip, it triggered a chain reaction in the derivatives market. According to data from Coinglass, $311.3 million worth of crypto positions were liquidated in just 24 hours.

Out of this $305.89 million, $275.75 million were long positions. In plain English, that means the vast majority of these liquidations hit traders who were betting on crypto’s price to go up.

This cascade of liquidations isn't the root cause of Bitcoin's price drop, but it certainly didn't help matters.

As the market navigates through these issues, it's clear that multiple factors are at play. The German government's Bitcoin movements, whale behavior shifts, Mt. Gox repayment plans, and cascading liquidations have all contributed to the recent price volatility.

While short-term fluctuations can be unsettling, they also provide valuable insights into market dynamics. As the dust settles, market participants will be keenly watching how these factors evolve and influence Bitcoin's trajectory in the coming weeks and months.

Bitcoin’s Key Indicators Flash Bullish Signals, According to Trader

Popular trader Roman recently highlighted two classic technical indicators for BTC/USD, suggesting that Bitcoin (BTC) could be setting the stage for a significant price breakout. Roman's analysis points to the Relative Strength Index (RSI) and Bollinger Bands on the weekly chart as key signals for a potential price surge.

Despite a lackluster performance in June that left many holders disappointed, Bitcoin's long-term outlook remains promising. Some analysts believe that BTC is merely consolidating below its all-time highs, a typical behavior in bull markets that can persist for several months.

Roman, however, sees a return to the highs seen earlier this year as imminent. On June 21, he noted that Bitcoin is forming a third bullish divergence between its price and RSI, while many traders are capitulating and predicting lower prices. He emphasized that the Bollinger Bands are tightening, which often precedes a period of high volatility.

"We are now forming a 3rd bullish divergence between Price and RSI while many are capitulating & calling for lower," Roman wrote. "Bollinger Bands are also squeezing tighter - creating that volatility to send without returning." An accompanying chart showed RSI making lower lows as the price made higher lows. This combination, along with the narrowing Bollinger Bands, suggests that significant volatility could be on the horizon.

X's Payments Platform to Launch Without Dogecoin or Crypto Integration

Despite speculation fueled by Elon Musk's vocal support for Dogecoin (DOGE), regulatory documents indicate that Musk's plans for a payments service do not currently include digital tokens, according to a Bloomberg report. The documents reveal plans for a subsidiary called X Payments, which has obtained money transmitter licenses in 28 states and is seeking approval in the remaining ones. X Payments is expected to offer a service similar to Venmo or Zelle, providing a new way for users to handle payments on the platform.

While the integration of cryptocurrencies could happen in the future, Dogecoin supporters remain hopeful. However, the precise objectives of X Payments remain somewhat ambiguous based on the documents and statements from Musk and Twitter CEO Linda Yaccarino.

Yaccarino recently emphasized the transformative potential of Twitter's upcoming payments functionality. "We are actually redefining what users will come to rely on," she said. "The scope of our vision, and the pace of the innovation at the company, is like nothing I can describe."

Despite the absence of immediate crypto integration, Musk's enthusiasm for digital currencies remains evident. His tweets have previously caused significant price movements in Dogecoin, and Tesla once held a substantial Bitcoin stash. Musk has also reportedly spent years exploring the potential for crypto payments.

MakerDAO Governance Delegate Loses $11 Million in Phishing Scam

A MakerDAO governance delegate has lost $11 million worth of Aave Ethereum Maker (aEthMKR) and Pendle USDe tokens due to a phishing scam. The incident, detected by Scam Sniffer in the early hours of June 23, occurred after the delegate inadvertently signed multiple fraudulent signatures.

The scam involved the transfer of 3,657 aEthMKR tokens from the sender address “0xfb94d3404c1d3d9d6f08f79e58041d5ea95accfa” to the recipient address “0x739772254924a57428272f429bd55f30eb36bb96,” with the transaction being confirmed in just 11 seconds. Arkham identified the victim as a MakerDAO governance delegate, a crucial role within the MakerDAO ecosystem. These delegates are responsible for voting on governance proposals, polls, and executive votes, significantly influencing the decisions within the Maker protocol.

Phishing scams involve cybercriminals posing as reputable entities to deceive individuals into providing sensitive information. In this case, the victim was tricked into signing multiple permit network phishing signatures, leading to the substantial loss of tokens.

The MakerDAO protocol relies on MKR tokenholders and delegates to vote on proposals, which progress from initial polls to final executive votes. Once a proposal is approved, it is implemented into the Maker protocol after a waiting period known as the Governance Security Module (GSM), designed to prevent sudden changes to the protocol.

CoinStats Suspends User Activity Following Security Breach Affecting 1,590 Wallets

Cryptocurrency portfolio manager CoinStats announced a security breach that impacted 1,590 crypto wallets. "The attack has been mitigated, and we have temporarily shut down the application to isolate the security incident." According to the CoinStats team, only a small fraction, 1.3%, of all CoinStats Wallets were affected. The company reassured users that "none of the connected wallets and CEXes were impacted."

Despite addressing the immediate threat, CoinStats has yet to disclose the full extent of the damage from the breach. They have promised to provide updates as more information becomes available. CoinStats emphasizes on its website that it only requests read-only access to connected crypto wallets, which should theoretically keep users' holdings "perfectly safe under any conditions."

CoinStats allows users to connect all their crypto wallets and track their entire portfolio in one place. The platform has shut down its website while it works to resolve the security issue. CoinStats also published a Google document listing the affected crypto wallets, noting that the list might change as the investigation continues, though significant updates are not expected. Users with wallets on the list are advised to move their funds immediately using their exported private keys.

This incident adds to a growing list of security breaches in the crypto industry. Recently, Rain exchange lost $14.1 million worth of crypto in a confirmed exploit two weeks ago. According to Crystal Intelligence, the crypto industry has experienced 785 reported hacks and exploits over the past 13 years, resulting in nearly $19 billion worth of digital assets being stolen since the first known crypto hack on June 19, 2011.

Pantera Capital Launches New Fund for Toncoin Investment

Crypto venture capital firm Pantera Capital is raising funds for a new investment vehicle named the "Pantera TON Investment Opportunity." The fund aims to acquire more The Open Network's Toncoin (TON) tokens. Prospective investors are required to express their interest by June 21 to secure a spot in the fund, with a minimum investment threshold set at $250,000.

Pantera's commitment to TON is evident as this new fund follows the firm's largest-ever investment made in the TON token. Although Pantera did not disclose specific deal terms at the time, the email indicates that the investment was made in March at a "significant discount to the spot price." The investment was officially announced by Pantera in May.

"We believe the TON network is still in its early stages, and we are excited to witness the adoption of its ecosystem and new features by the Telegram user base," said Ryan Barney, a partner at Pantera, last month.

The TON blockchain has experienced significant growth recently. In April, Tether's USDT stablecoin launched on the TON network, achieving rapid adoption. According to Pantera, over 400 million USDT were in circulation on the network within two months, surpassing the adoption rate of any prior blockchain.

Telegram's gaming mini-apps on the TON network have also seen remarkable success. Pantera highlights that Notcoin and Hamster Kombat, two Telegram games, have outpaced traditional crypto games like Axie Infinity. Notcoin reached 35 million players and about 10 million daily active users within five months of its launch, while Hamster Kombat attracted 100 million players and between 40 to 45 million daily active users.

The TON token is now the 8th largest cryptocurrency, with a market cap exceeding $18.2 billion. TON is currently trading at $7.42, down 1% over the past 24 hours but up 19.6% over the past month, despite a market downturn.

Aptos Labs Partners with NBCUniversal for Web3 Fan Experiences

Aptos Labs and NBCUniversal have inked a long-term development agreement to bring innovative Web3 fan experiences, customer loyalty programs, and gaming to the entertainment giant. Aptos, which has a proven track record in enhancing fan engagement for major Universal films, is set to expand on NBCUniversal's prior Web3 initiatives.

The collaboration aims to build on previous successes, such as "Free Renfield the Game," which Aptos developed in March 2023. Based on the film "Renfield," the game allowed players to search for bugs that granted superhuman abilities and match them to scenes from the movie, with prizes including collectible digital art.

In September, Aptos took its Web3 efforts further by creating behind-the-scenes media, augmented reality filters, digital art, and prize opportunities for ticket purchasers of "The Exorcist: Believer" through the Fandango service.

NBCUniversal's embrace of Web3 technology is evident in other offerings as well. Greg Reed, Universal Pictures' vice president of technology partnerships, commented on the evolving landscape: "Today's media and entertainment landscape is rapidly changing, with fan experiences and preferences driving a lot more of those shifts than in previous eras." NBCUniversal, owned by telecommunications giant Comcast, includes DreamWorks film studio and the Peacock streaming service in its portfolio.

Aptos, led by former Meta executives Mo Shaikh and Avery Ching, launched a proof-of-stake blockchain in October 2022. This blockchain uses a programming language developed for Meta's Diem stablecoin project.

Kraken Recovers $3 Million in Missing Funds After Bug Bounty Exploit

Cryptocurrency exchange Kraken has successfully recovered nearly $3 million in digital assets following a high-profile bug bounty exploit by CertiK. Nicholas Percoco, Kraken's Chief Security Officer, confirmed the recovery in a June 20 post on X, stating: "Update: We can now confirm the funds have been returned (minus a small amount lost to fees)." This announcement came after Percoco initially revealed the disappearance of the funds on June 19, attributing the incident to a "security researcher" who had exploited a bug.

Kraken alleged that the security researcher had extorted the exchange, refusing to return the funds without a reward. Blockchain security firm CertiK soon identified itself as the "security researcher" involved in the incident. In a June 19 X post, CertiK detailed that it had informed Kraken about an exploit that allowed the withdrawal of millions from the exchange's accounts. CertiK further claimed that Kraken had threatened its employees to repay the mismatched amount of crypto within an unreasonable time frame, without providing repayment addresses.

The saga raised questions about the necessity of the nearly $3 million withdrawal. Percoco initially noted that a mere $4 transfer would have sufficed to prove the bug and qualify for a sizable reward from Kraken's bounty program. However, CertiK defended its actions, explaining that the large sum was part of an effort to test the limits of Kraken's security and risk controls. "We want to test the limit of Kraken’s protection and risk controls. After multiple tests across multiple days and close to $3 million worth of crypto, no alerts were triggered and we still haven’t figured out the limit," CertiK stated.

CertiK also clarified that it did not initially request a bounty; instead, Kraken had mentioned the bounty first. "We never mentioned any bounty request. It was Kraken who first mentioned their bounty to us, while we responded that the bounty was not the priority topic and we wanted to make sure the issue was fixed," CertiK elaborated. They added that no Kraken user funds were at risk since the exploited funds were "minted out of air."

German Government Begins Massive Bitcoin Sell-Off, Sparking Market Jitters

The German government has commenced the sale of a significant Bitcoin stash seized from the operators of a movie piracy website. Over $195 million in Bitcoin was sold in the past 24 hours. In the latest transactions, $65 million worth of Bitcoin was likely deposited into exchanges, adding to the $130 million moved the previous day. Despite these sales, the German government still holds approximately $3.05 billion in Bitcoin.

This move is part of a recent trend of large-scale Bitcoin transactions by German authorities, with substantial funds being transferred to major exchanges like Coinbase, Kraken, and Bitstamp, hinting at further sales. The nearly 50,000 Bitcoin, originally seized from the operators of Movie2k.to, a film piracy site last active in 2013, were handed over to the German Federal Criminal Police Office (BKA) in January following a voluntary surrender by the suspects.

The sale has already impacted Bitcoin’s market price, which has slipped due to these significant sales. Bitcoin's price has dropped about 0.67% over the past 24 hours, now sitting around $64,723, contributing to a nearly 3% decline over the past 7 days.

Despite the German government's sell-off, companies like MicroStrategy continue to show bullishness. The software firm recently purchased $786 million worth of Bitcoin, expanding its significant holdings. This acquisition followed the raising of $800 million through convertible senior notes.

Bernstein Analysts Predict Bitcoin Could Reach $200,000 by Next Year Due to ETF Inflows

Analysts at research and brokerage firm Bernstein have revised their Bitcoin price target upwards, forecasting that the cryptocurrency could reach nearly $200,000 by the end of next year. This optimistic prediction follows strong inflows into spot U.S. Bitcoin exchange-traded funds (ETFs) since their approval in January. Previously, Bernstein had set a target of $150,000 for Bitcoin.

The analysts' projection is based on the assumption that spot Bitcoin ETFs will account for around 7% of the total circulating Bitcoin supply by the end of 2025. "We see Bitcoin ETFs as on the cusp of approvals at major wirehouses and large private bank platforms in the third and fourth quarters," wrote Bernstein analysts Gautam Chhugani and Mahika Sapra in a note to clients.

They describe the institutional basis trade as a "Trojan Horse" for adoption, with institutional investors currently evaluating long positions. Presently, nearly 80% of spot Bitcoin ETF flows come from self-directed retail investors via broker platforms, while institutional integrations with wirehouses are still in their early stages.

According to Bernstein, combined ETFs have already attracted around $15 billion in net new flows. The analysts expect Bitcoin ETFs to represent approximately 7% of Bitcoin in circulation by 2025 and about 15% by 2033. They project that spot Bitcoin ETFs will reach around $190 billion in assets under management (AuM) by the market peak in 2025 and $3 trillion by 2033.

Jupiter Co-Founder Proposes Major Tokenomics Overhaul, 30% Cut to Supply

Pseudonymous co-founder of Jupiter, known as Meow, published a draft proposal to alter the tokenomics of JUP, the native token of the Solana-based decentralized exchange aggregator. This proposal suggests significant changes, including a 30% reduction in the total supply of JUP, currently at 10 billion tokens, a voluntary 30% cut from the team’s allocated tokens, and a corresponding 30% decrease in “Jupuary” emissions.

"The primary concern is that our fully diluted valuation (FDV) and total supply are problematic," Meow said. Currently, Jupiter has an FDV of $7.74 billion, according to CoinMarketCap. "Additionally, there are ongoing concerns about emissions," Meow added.

The announcement caused JUP to rise approximately 7% to $0.82. However, it has since traded back down and is flat for the past 24 hours, trading around $0.77. JUP is still trading higher than its initial airdrop price of $0.66 in January, however, it has lost more than half of its value from its all-time high of $1.75 in March.

The disparity between JUP's total supply and its current circulating supply is substantial, with 8.65 billion tokens yet to circulate, more than six times the current circulating supply. Meow believes the proposed reductions will "trim the excess from the FDV, engage the community in understanding JUP’s tokenomics, address concerns over high emissions, and motivate everyone towards collective growth."

LayerZero Announces Airdrop Eligibility for 1.28 Million Wallets

LayerZero, the leading cross-chain interoperability protocol, has revealed that 1.28 million wallets are eligible for its highly-anticipated airdrop. The announcement, made by Bryan Pellegrino, CEO of the LayerZero Foundation, marks one of the largest token generation events to date.

On July 19, Pellegrino disclosed that 23.8% of the token supply will be distributed to LayerZero users and developers. Of this, 8.5% of the tokens will be claimable when the airdrop goes live. The allocation includes 5% for core contributors, 3% for ecosystem projects that have submitted requests for proposals (RFP), and 0.5% for the community pool. The remaining tokens will be distributed gradually over the next three years, with retroactive distributions occurring every 12 months.

However, Pellegrino cautioned that the number of eligible wallets could change as the project continues to weed out wallets involved in sybil farming. Sybil farming refers to the practice where a single entity uses multiple wallets to farm activity on a protocol to increase their airdrop allocation.

In an effort to maintain the integrity of the airdrop, LayerZero has launched an anti-sybil campaign to exclude addresses identified as engaging in sybil activity. Addresses found to be sybil farming will be excluded from the airdrop, though sybil users who self-report could still receive 15% of their expected token allocation. Pellegrino noted that of the six million wallets that have used LayerZero, about one million were involved in sybil farming.

In April 2023, the company successfully raised $120 million in a Series B funding round, which valued LayerZero at $3 billion. The protocol facilitated over $6.7 billion worth of cross-chain asset transfers and transmitted 29.6 million messages in the first quarter of 2024.

CertiK Reveals Itself as Kraken's $3 Million Exploiter Amid Controversy

Blockchain security firm CertiK has publicly identified itself as the "security researcher" involved in a contentious incident with cryptocurrency exchange Kraken, in which $3 million worth of digital assets were reportedly extracted from Kraken accounts.

CertiK disclosed it had informed Kraken about an exploit that allowed the removal of millions of dollars from the exchange’s accounts. Kraken’s chief security officer, Nicholas Percoco, had previously accused an unnamed security team of “extortion” for withholding the return of the funds until Kraken agreed to a payment, purportedly linked to potential damages had the vulnerability not been disclosed.

CertiK responded by alleging that Kraken's security team threatened individual CertiK employees, demanding the repayment of a mismatched amount of cryptocurrency within an unreasonable time frame, and without providing repayment addresses. “In the spirit of transparency and our commitment to the Web3 community, we are going public to protect all users’ security. We urge [Kraken] to cease any threats against whitehat hackers,” CertiK stated.

The security firm provided a timeline of events, beginning with the identification of the exploit on June 5 and culminating in claims that Kraken threatened a CertiK employee on June 18.

The incident has sparked mixed reactions within the crypto community. While some users have expressed support for Kraken, arguing that CertiK's actions do not align with the typical behavior of white hat hackers, others have criticized Kraken's handling of the situation. The legal ramifications for Kraken remain uncertain at this stage.

Bitcoin Whales Realize Unprecedented $1.2B in Profits Amid Market Turmoil

Over the past two weeks, long-term Bitcoin (BTC) whales have cashed out $1.2 billion in profits. According to CryptoQuant, these "old whales" have taken advantage of soaring prices to sell coins they acquired at much lower values, marking an unprecedented profit-taking period in USD terms.

CryptoQuant's Head of Research, Julio Moreno, highlighted the significance of this activity, noting that the last comparable event occurred in April 2022, when Bitcoin traded at $40,000. During that period, whales realized $683 million in profits in a single day, translating to 17,000 BTC. In contrast, the recent two-week period saw profits of 14,000 BTC but with a much higher USD value.

Bitcoin whales, typically entities holding at least 1,000 BTC (worth approximately $65 million at current prices), are often institutional investors rather than individuals. CryptoQuant CEO Ki Young Ju suggested that many of these sales have likely been executed through brokers, which means the market hasn't yet felt the full impact of this sell-off. However, he cautioned that brokers could deposit BTC to exchanges, potentially affecting market liquidity and prices.

This activity comes at a time when the crypto market is already facing bearish momentum. Bitcoin has dropped 3% over the past week, compounded by $300 million in outflows from Bitcoin ETFs over the last two days.

AI-Related Tokens Surge Following Nvidia's To Be the World’s Most Valuable Company

Fetch.ai (FET) has led a notable surge in major AI-related cryptocurrency tokens over the past 24 hours, spurred by Nvidia's recent achievement of becoming the world's most valuable company. Fetch.ai saw its value soar by over 25%, with other tokens such as Bittensor (TAO) rising by more than 19%, Render (RNDR) jumping over 13%, and NEAR Protocol (NEAR) and Internet Computer (ICP) experiencing gains just under 10%.

The market's enthusiasm for AI-related cryptocurrencies reflects the broader excitement surrounding advancements in artificial intelligence and their potential applications. This trend is evident as Nvidia's prominence in the AI space bolsters investor confidence and drives up the value of related digital assets.

However, YouHodler Risk Manager Sergei Gorev has advised caution regarding the latest rally in AI-related tokens. He suggested that the recent surge might be fueled more by market hype than by underlying fundamentals. "As for the quotes of Nvidia shares, we consider the stock's recent dynamics as a result of the market's overreaction to prospects that are not yet fully clear. The narrative of creating something new has always caused hype in the market, whether it's 3D printers, electric vehicles, etc. Now, it's about the hype around AI."

While the excitement around AI and its potential continues to drive significant gains in the cryptocurrency market, industry experts like Gorev urge investors to remain cautious and consider the long-term viability and substance behind these valuations.

“Pharma Bro” Martin Shkreli Claims Involvement in Trump DJT Memecoin Amid Controversy

Martin Shkreli, infamously known as "Pharma Bro," has claimed involvement in the creation of the DJT token, a Solana-based meme coin that purports ties to the Trump family. This revelation came in the wake of crypto analytics platform Arkham Intelligence offering a $150,000 bounty to identify the creator of the DJT token, possibly spurred by a potential $100 million bet between pseudonymous crypto trader GCR and Shkreli.

On-chain investigator ZachXBT posted his findings on X, declaring he had proof of the token’s creator. Shortly after, Shkreli reached out to ZachXBT, and within an hour, hosted a Twitter Spaces session where he asserted his role in the creation of the DJT token. However, GCR has remained silent since a tweet last night about the broader crypto market, having previously stated that they would consider the bet settled if "Donald J Trump himself" confirmed launching the coin.

Shkreli claimed he worked with Barron Trump, Donald Trump’s youngest son, but expressed uncertainty about the Trump family publicly endorsing the token. He also purported to have evidence supporting his claims, although this was partially debunked by a screenshot shared with ZachXBT, suggesting Shkreli had insider information rather than direct involvement.

The absence of a recording from the Twitter Space session has led to conflicting accounts of Shkreli’s statements. Some users reported he admitted to insider trading and launching the token with a friend, intending to see it devalue. Others recounted him claiming to launch the token but could no longer ensure Trump family support.

Despite the rumors, traders on Polymarket, a blockchain-based prediction platform, remain skeptical about the DJT token's legitimacy. 92% of Polymarket participants are betting against the Trump family’s involvement with the DJT token. The token itself has plummeted over 60% in value in the past 24 hours.

Consensys: SEC Closes Investigation Into Ethereum

Leading Ethereum developer Consensys revealed late Tuesday that the U.S. Securities and Exchange Commission (SEC) has decided to close its investigation into Ethereum 2.0. This announcement marks a pivotal moment for Ethereum developers and the broader crypto industry.

The decision follows the SEC's approval of Ethereum spot ETFs last month. Consensys had responded to this approval by sending a letter to the SEC, pointing out that the funds were based on ETH being classified as a commodity. The letter sought clarification on how this classification would impact the ongoing investigation.

Laura Brookover, an attorney for Consensys, took to Twitter to share the SEC's notification letter along with the company's full statement. "Things have changed remarkably fast since we filed our lawsuit against the SEC in late April, culminating in today’s development," Brookover wrote. "After more than a year, the Ethereum investigation is finally over with no charges against anyone."

Despite the positive news, the SEC's correspondence included a standard disclaimer, noting that the conclusion of the investigation should not be interpreted as an exoneration or a guarantee that no future action would be taken.

While the closing of the Ethereum investigation is a significant victory, Consensys remains critical of the SEC's overall approach to crypto regulation. "The closing of the Ethereum investigation is momentous, but it’s not a cure-all for the many blockchain developers, technology providers, and industry participants who have suffered under the SEC’s unlawful and aggressive crypto enforcement regime."

DJT Surges on Trump Official Token Rumors, Arkham Offers $165K Bounty to Unmask Creator

Blockchain analytics firm Arkham Intelligence has announced a $150,000 bounty for anyone who can definitively identify the creator of the Solana-based token DJT, which saw a dramatic 500% surge on Monday fueled by unsubstantiated rumors linking it to former President Donald Trump.

"$150,000 to the first person to definitively prove the identity of the creator of $DJT," Arkham posted on X on June 18. The bounty, which will remain active for eight days, will be paid in 100,000 Arkham (ARKM) tokens, valued at $1.50 each at the time of the announcement, according to CoinMarketCap. ARKM is currently valued at $1.65, increasing the value of the bounty to $165,000.

Arkham's bounty notice specifies that the evidence must be original and not sourced from the internet. "Find definitive evidence of the creator of $DJT. We will accept private proof for this bounty but if accepted, that proof will be made public," the notice states. It also clarifies that simply linking to previously broken news will not qualify for the reward.

In parallel, speculation continues to swirl online about whether Donald Trump or someone from his family is behind the DJT token. The decentralized betting platform Polymarket has seen nearly $1.7 million in wagers on whether the DJT token is genuinely linked to Trump. Currently, only 17% of bettors are in the "Yes" camp. To win, they need to provide definitive proof by 11:59 PM ET on June 21; otherwise, the market will resolve to "No."

The rumors that Trump might be involved with the DJT token were initially sparked by a post from tech blog Pirate Wires, which claimed that Trump's son, Barron Trump, spearheaded the token. However, Pirate Wires offered no detailed sources for these claims. Pirate Wires creator Mike Solana admitted he had not spoken directly with Trump and was merely reporting what he had heard from his sources.

DeFi Token VELO Gains Interest After Investment by U.S. Congressman Revealed

U.S. Congressman Mike Collins (R-Georgia) recently disclosed a $15,000 purchase of Velodrome, a relatively small altcoin, in his filings. This investment has thrust Velodrome Finance, which has a market capitalization of around $79 million, into the spotlight. The VELO token, the native currency of the Velodrome ecosystem, saw a 9% increase in value over the past week, and is now trading at $0.1122.

Velodrome is a decentralized finance (DeFi) protocol on layer-2 networks. Launched in June 2022, Velodrome Finance evolved from the Solidly project with the aim of supporting liquidity for DeFi protocols on Layer 2 solutions. It employs a “vote escrow” mechanism inspired by Curve Finance and Olympus DAO, designed to promote long-term holding through staking, rebasing, and bonding.

The platform's innovative approach seeks to mitigate common issues in DeFi, such as the “farm and dump” scenario, by balancing protocol emissions with fees through a rewards system. Velodrome offers various liquidity pools, with reward rates determined by user voting. The initial distribution of VELO involved 400 million tokens, allocated among community members, partner protocols, the Velodrome team, and the Optimism team. VELO holders benefit from transaction fees, bribes, and rebase rewards. When locked, VELO converts to veVELO, allowing users to vote on pools and influence protocol decisions.

Congressman Collins' investment has brought attention to Velodrome, highlighting its unique position within the DeFi space. It also shows the increasing involvement of U.S. politicians in cryptocurrencies, most notably presidential candidate Donald Trump’s recent display of strong support towards the crypto industry, going as far as calling himself the ‘crypto President.’

TRUMP Memecoin Whale Nets $3.7 Million Profit Amid Market Sell-Off

In the midst of a turbulent market sell-off, a major memecoin whale has made headlines by securing a substantial profit from their MAGA (TRUMP) tokens. The whale, operating under the wallet identifier “0x52C0,” has reportedly sold over 171,000 TRUMP tokens, netting 414 Ether (ETH), which translates to approximately $1.44 million within the past 24 hours. This savvy move resulted in an overall profit of more than $3.7 million on their investment.

According to a June 18 post by Lookonchain, the whale strategically sold their TRUMP tokens at the $8.38 mark. Despite this significant sale, 28% of the whale's portfolio still consists of TRUMP tokens, valued at around $372,000. The recent decline in the value of TRUMP tokens coincided with the whale's decision to lock in profits. According to data from CoinMarketCap, the TRUMP token is down over 27% in the past week. However, the token recovered slightly and is up 38% in the past 24 hours, now trading at $9.03.

The drop in TRUMP token prices is partly attributed to rumors surrounding the launch of an official Trump cryptocurrency on Solana. Pirate Wires, a tech blog, claimed in a June 17 X post that Barron Trump, the 18-year-old son of former President Donald Trump, was leading the launch of a token named TrumpCoin (DJT). However, there has been no official confirmation from Trump's team, and blockchain analysis firms like Bubblemaps have expressed skepticism about any direct connection between DJT and the former president.

Other memecoins are also hit by significant selloffs. Leading memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB) experienced significant weekly declines of 8.8% and 13.6%, respectively. Pepe (PEPE) dropped 8.8%, while Solana-based Dogwifhat (WIF) fell over 16.2%, according to CoinMarketCap.